SAFE: Supporting Defence Procurement Across Europe
The Council of the European Union approved SAFE (Security Action for Europe) in May, creating the EU's latest financial mechanism to support Member States in accelerating their defence preparedness. It enables urgent, large-scale investments that strengthen Europe's defence industrial base while addressing critical capability shortfalls.
SAFE will provide up to €150bn in competitively-priced, long-maturity loans to member states looking to invest in their defence capabilities, ensuring equipment is delivered when it is needed most.
Taking to social media platform BlueSky, Andrius Kubilius, EU Commissioner for Defence and Space, said: "Delighted to see big interest of EU Member States in SAFE loans. Up to €150bn will reach European defence industry and contribute to ramping up European defence readiness.
"This is a major step towards achieving our defence goals quickly and decisively."
Common procurement strategy reduces fragmentation
To maximise impact and reduce fragmentation, SAFE projects are to be based on the principle of common procurement. This means they will involve at least one member state benefiting from SAFE and another member state, as well as Ukraine and EEA-EFTA countries.
However, amid ongoing geopolitical tension, SAFE will temporarily support procurements by individual member states to ensure the timely delivery of critical assets.
EU borrowing for the financing of the new programme will enable competitively-priced and attractively-structured long-duration loans to those member states' requests. The terms of these loans benefit from the EU's strong credit rating.
SAFE makes good on the goals established by the European Council in March 2025 to increase defence readiness. It is the first pillar of the European Commission's ReArm Europe Plan/Readiness 2030, which aims to unlock more than €800bn in defence spending across the EU.
The initiative complements existing EU efforts by:
- Boosting national defence budgets through greater flexibility under the Stability and Growth Pact;
- Facilitating defence-related investment through EU cohesion and regional funds;
- Leveraging support from the European Investment Bank;
- Mobilising private capital to support strategic defence initiatives.
Two-tier priority system
SAFE will support the procurement of priority defence products across two categories:
- Ammunition and missiles
- Artillery systems, including deep precision strike capabilities
- Ground combat capabilities and their support systems, including soldier equipment and infantry weapons
- Small drones (NATO class 1) and related anti-drone systems
- Critical infrastructure protection
- Cyber
- Military mobility including counter-mobility
- Air and missile defence systems
- Maritime surface and underwater capabilities
- Drones other than small drones (NATO class 2 and 3) and related anti-drone systems
- Strategic enablers such as, but not limited to, strategic airlift, air-to-air refuelling, C4ISTAR systems as well as space assets and services
- Space assets protection
- Artificial intelligence and electronic warfare
Across both categories, procurement contracts must ensure that no more than 35% of component costs originate from outside the EU, EEA-EFTA or Ukraine.
Category 2 projects must meet stricter eligibility conditions, including the possession by contractors of the capacity to modify the equipment in case of need without non-EU restrictions.
19 initial Member States expressed interest to access loans through SAFE mechanism: Belgium, Bulgaria, Czech Republic, Denmark, Estonia, Greece, Spain, France, Croatia, Italy, Cyprus, Latvia, Lithuania, Hungary, Poland, Portugal, Romania, Slovakia and Finland.
Defence partnership
SAFE marks a new beginning in EU cooperation with trusted third countries. From its outset, Ukraine and EEA-EFTA countries will take part on equal terms with EU Member States. This includes eligibility for joint procurement and procurement from their defence industries.
While only Member States can get these SAFE loans, the following countries may participate in common procurement:
- EU acceding, candidate and potential candidate countries;
- Countries that have signed Security and Defence Partnerships with the EU, such as Albania, Canada, Japan, Moldova, North Macedonia, Norway, South Korea and the United Kingdom.
Additional bilateral or multilateral agreements may be concluded to broaden participation and eligibility.
SAFE came into effect from 29 May following its publication in the Official Journal of the European Union. Now, Member States can submit their national plans in order to access the funds and begin implementing procurement projects which align with EU priorities.
Once received, the commission can start its review and assessment process of the initial batch of National Defence Investment Plan proposals submitted under SAFE, with the negotiation of loan agreements and operational arrangements to take place by February 2026.
